Vnesheconombank (VEB) disclosed the main parameters of the loan for the amount of more than 600 billion rubles. from the Chinese state development bank of China Development Bank. The money will be allocated in RMB for a period of up to 5 years, without collateral, a representative of the state corporation told Vedomosti.

VEB and China Development Bank agreed to issue loans last week on the eve of the Shanghai Cooperation Organization (SCO) summit. The agreement should create a mechanism for financial support of integration processes in the space of the Eurasian Economic Union (EAP) and the Chinese initiative "One belt, one way", which the countries agreed in 2015. Several joint large projects already exist among the countries, including the Northern Sea Route and high-speed traffic from China to Europe. In total there are about 70 projects that can be jointly financed, said the chairman of VEB Igor Shuvalov.

The agreement provides for the allocation of money for agreed projects, the timing of individual tranches and rates are determined by a specific project or project pool, explained the representative of VEB. In the basic version, the urgency of resources - up to 5 years, the rate meets the target parameters of VEB funding, the funds will be provided without security, he said.

Among the priorities are cross-border projects, export support programs, projects from transport, logistics infrastructure, the creation of joint high-tech industrial productions.

Also, money can be spent by VEB to participate in the "project financing factory," says the source of Vedomosti, who is involved in negotiations with the Chinese bank. The total value of VEB's projects of the "project financing factory" reaches almost 1 trillion rubles. The mechanism of the "factory" assumes syndicated financing, VEB will invest in each project no more than 30-40%.

VEB managed to negotiate a loan in November last year, the negotiations were not easy, including because of the risk of sanctions, Vedomosti's interlocutor, who is familiar with the content of the agreement, said. For China Development Bank, the opening limit on VEB to 65 billion yuan - a weighty one. For example, the limit of the state bank of China for the SCO countries is 30 billion yuan, he notes.

Five years is not very long money for investment projects, says Fitch Ratings analyst Alexander Danilov. History shows that credit agreements between state-owned banks of the two countries are not always fulfilled and some of the money "hangs in the air," says BCS chief economist Vladimir Tikhomirov. But Russia and China have a desire to develop ways of delivering goods from Asia to Europe, alternative to the traditional sea route, he adds.